On May 28, the Ministry of Finance and Public Credit (SHCP, in Spanish), through the National Commission for Regulatory Improvement (CONAMER, in Spanish), presented a new version of the draft bill that modifies the Provisions applicable to Credit Institutions regarding liquidity associated with Net Capital. The new text establishes the classification that the CNBV will apply to commercial banks based on the Capitalization Index and other ratios. Those interested in commenting on this new version of the preliminary draft may do so by clicking on the following link.
Among the changes proposed in this new text, it is mentioned that the National Banking and Securities Commission (CNBV, in Spanish) will classify commercial banks in any of the categories set forth in Article 220 of the general provisions based on the Capitalization Index, the Basic Capital Coefficients and the Fundamental Capital Coefficients, among others. These ratios will be calculated by the Bank of Mexico (BANXICO) based on the information submitted by commercial banks.
It should be recalled that the bill establishes that the SHCP will oblige credit institutions to have the capacity to absorb losses, with a sufficient supply of capital so as not to interrupt their critical functions and daily operations with respect to users. In this way, it proposes that credit institutions maintain a net capital in relation to the credit and market risks incurred in their daily operations.